The Farm Service Agency (FSA) has announced the availability of loan payment funding for eligible borrowers with qualifying direct farm loans under the American Rescue Plan Act Section 1005. The information will be published soon with payments expected to start in early June and continue on a rolling basis.

“The American Rescue Plan has made it possible for USDA to deliver historic debt relief to socially disadvantaged farmers and ranchers beginning in June,” U.S. Agriculture Secretary Tom Vilsack said in a statement.

Section 1005 provides FSA with funding and authorization to pay up to 120% of direct and guaranteed loan outstanding balances as of Jan. 1, 2021, for socially disadvantaged farmers and ranchers as defined in Section 2501(a) of the Food, Agriculture Conservation, and Trade Act of 1990. Under that definition, a socially disadvantaged farmer or rancher is a member of a socially disadvantaged group subjected to racial or ethnic prejudice because of their identity as members of a group without regard to their individual qualities. Qualifying loans include certain direct loans under the Farm Loan Programs and Farm Storage Facility Loan Program.

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